Minimum Wages and Wage Fixing Machinery
A. Minimum Wage

1. General Principles
a. Right to a living wage 2nd Par, Sec 3, Art XIII, 1987 Constitution It shall guarantee the rights of all workers to (1) self-organization, (2) collective bargaining and negotiations, and peaceful concerted activities, including the (3) right to strike in accordance with law. They shall be entitled to (4) security of tenure, (5) humane conditions of work, and (6) a living wage. They shall also (7) participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.

b. No work, No pay / A fair day’s wage for a fair day’s labor  Azucena says: This maxim continues to govern the relation between labor and capital and remains a basic

factor in determining employees’ wages. If there is no work performed by the employee there can be no wage or pay unless the laborer was able, willing and ready to work but was prevented by management or was illegally locked out, suspended or dismissed.

SUGUE v TRIUMPH INTERNATIONAL PHILS (2009; Leonardo-De Castro, J.) QUICK FACTS: Sugue and Valderrama attended the hearing of the NLRC complaint for monetary claims during work hours and using company vehicle. Triumph charged the said absence to their vacation leave credits. HELD: It is not a discriminatory act and in fact, fair and reasonable to do so considering Sugue and Valderrama did not perform work for one-half day. Attending the hearing was not part of compensable time. They voluntarily absented themselves while the legality and propriety of their demands is not yet known, hence they should lose their pay during period of such absence. AKLAN ELECTRIC CORP v NLRC (2000; Gonzaga-Reyes, J.) QUICK FACTS: AKELCO temporarily transferred principal business operations from Lezo, Aklan to Kalibo, Aklan because of the imminent danger in said place. Workers willfully and maliciously refused to heed the lawful orders and issuances of GM. Under principle of “no work, no pay” they were considered as having abandoned their employment and on a mass leave. HELD: The age-old rule in governing relation between labor and capital of fair day’s wage for a fair day’s labor remains as the basic factor in determining employee’s wages. No work, no pay unless of course, laborer was able, willing and ready to work but was illegally locked out, suspended or dismissed or otherwise illegally prevented from working. Not fair to allow them to recover something they have not earned and could not have earned because did not render services at the Kalibo office during stated period. a. Equal pay for work of equal value Art 135 Discrimination prohibited – It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex. The following are acts of discrimination: (a) Payment of a lesser compensation, including wage, salary or other form of remuneration and fringe benefits, to a female employees as against a male employee, for work of equal value. (b) Favoring a male employee over a female employee with respect to promotion, training opportunities, study and scholarship grants solely on account of their sexes. Criminal liability for the willful commission of any unlawful acts as provided in this Article or any violation of the rules and regulations issued pursuant to Sec 2 hereof shall be penalized as provided in Art 288 and Art 289 of this Code… PROVIDED: The institution of any crim action under this provision shall not bar the aggrieved employee from filing an entirely separate and distinct action for money claims, which may include claims for damages and other affirmative reliefs. The actions hereby authorized shall proceed independently of each other. Art 248 (e) Unfair labor practices – To discriminate in regard to wages, hours of work and other terms and conditions of employment in order to encourage or discourage membership in any labor organization. Nothing in this Code or in any other law shall stop the parties from requiring membership in a recognized CB agent as a condition for employment, except those employees who are already members of another union at the time of the signing of the CB agent. Employees of an appropriate bargaining unit who are not members of the recognized CB agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized CB agent, if such non-union members accept the benefits under the CBA… PROVIDED: the individual authorization required under Art 242, par (o) shall not apply to the nonmembers of the recognized CBA

piece. supported by adequate proof. housing. Art 97 (c) “Employee” includes any individual employed by an employer Art 97 (e) “Employ” includes to suffer or permit to work Art • • • 98 Application of Title – This Title () shall not apply to: Farm tenancy or leasehold Domestic service Persons working in their respective homes in needle work or in any cottage industry duly registered in accordance with the law Sec 3. or other facilities customarily furnished by the employer to the employee ○ “Fair and reasonable value” – shall not include any profit to the employer. or commission basis or other method of calculating the same • payable by an employer to an employee • under a written or unwritten contract of employment • for work done or to be done or for services rendered or to be rendered • includes the fair and unreasonable value.This Rule shall not apply to the following persons: (a) Household or domestic helpers. Ponente) QUICK FACTS: Different wages given to foreign-hires and local-hires. pay vacation allowance). task. foreign-hires already enjoy benefits to which local-hires are not entitled (e. HELD: He was not entitled to such commission because of delay in enforcement of alleged agreement.g. he is jointly and solidarily liable for unpaid wages of the guards. The exemption shall be subject to such terms and conditions and for such period of time as the Labor Sec may prescribe. that such recommendation shall be given only for the purpose of making the cooperative viable and upon finding and certification of said Bureau.) QUICK FACTS: Culla was a garage supervisor. J. or to any person affiliated with the employer ARMS TAXI v NLRC (1993. Jr. PROVIDED that such workers perform the work in their respective homes (d) Workers in any duly registered cooperative when so recommended by the Bureau of Cooperative Development and upon approval of the Labor Sec PROVIDED. 6. subdivisions & instrumentalities. PFDA is a GOCC.) QUICK FACTS: Security guards PFDA wants salary increase in conformity with Wage Order No. Grino-Aquino. because as an indirect employer through Odin Security Agency. Exemption from income tax – RA 9504 (17 June 2008) 1. PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY v NLRC (1992. HELD: Should be the given same compensation because they have the same workload. Coverage Art 97 (b) “Employer” includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include: • gov’t and all its branches. dispatcher and mechanic and driver for Arms Taxi. • capable of being expressed in terms of money. as determined by the Labor Sec.INTERNATIONAL SCHOOL ALLIANCE OF EDUCATION v QUISUMBING (2000. liaison man. Book 3 Coverage . a. J. a. of board. Form: agreement for compensation of services Art 97 (f) “Wage” paid to any employee shall mean the remuneration or earnings. lodging. . He wants the promised 15% commission. • as well as non-profit private institutions or organizations. After all. that the cooperative cannot resort to other remedial measures without serious loss or prejudice to its operation except through its exemption from the requirements of this Rule. • all GOCC and institutions. whether fixed or ascertained on a time. Gutierrez. however designated. including family drivers and persons in the personal service of another (b) Homeworkers engaged in needle work (c) Workers employed in any establishment duly registered with the National Cottage Industries and Development Authority in accordance with RA 3470 (). Rule VII. does NLRC have jurisdiction? HELD & RATIO: Yes.

) QUICK FACTS: ISSUE: HELD & RATIO: c. expansion and growth – Affirm labor as a “primary social economic force” Determination of compliance with minimum wage Art 99 Regional Minimum Wages – The minimum wage rates for agricultural and non-agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. Sec Sec Sec Sec 4. VII. IRAN v NLRC (1998.rate to be paid the handicapped workers which shall not be less than 75% of the applicable legal minimum wage Sec 2. J. Rule Rule Rule Rule VII. 6. tertiary. The voucher shall not be transferable except when the payee thereof dies or for a justifiable cause stops in his duties in which case it can be transferred to his brothers or sisters. Facilities and Supplements/Allowances MILLARES v NLRC (1999. Ponente) QUICK FACTS: ISSUE: HELD & RATIO: . Romero. Bellosillo. Art 61 Apprenticeship agreements. J. Ponente) QUICK FACTS: ISSUE: HELD & RATIO: BOIE TAKEDA v DE LA SERNA (1993. RA 7323 Sixty per centum (60%) of said salary or wage shall be paid by the employer in cash and forty per centum (40%) by the Government in the form of a voucher which shall be applicable in the payment for his tuition fees and books in any educational institution for secondary. VII. as the case may be. 5. Minimum Wage  Reasons for having a MWR – Promote productivity-improvement and gain-sharing measures to ensure a decent standard of living for the workers and their families – Guarantee the rights of labor to its just share in the fruits of production – Enhance employment generation in the countryside through industry dispersal – Allow business and industry reasonable returns on investment.1. If there be none. shall conform to the rules issued by the Labor Secretary. which in no case shall start below 75% of the applicable minimum wage. Cash Wage/Commission SONGCO v NLRC (1990. 7. … Apprenticeship agreements providing for wage rates below the legal minimum wage.) QUICK FACTS: ISSUE: HELD & RATIO: b. VII. vocational or technological education. Book Book Book Book 3 3 3 3 a. including the wage rates of apprentices. The amount of the education voucher shall be paid by the Government to the educational institution concerned within thirty (30) days from its presentation to the officer or agency designated by the Secretary of Finance. the amount thereof shall be paid his heirs or to the payee himself. may be entered into only in accordance with apprenticeship program duly approved by the Labor Secretary… Art 75 (c) Learnership agreements shall include… – The wages or salary rates of the learners which shall begin at not less than 75% of the applicable minimum wage Art 80 (b) Employment agreement for handicapped workers shall include… .

or other employee benefits being enjoyed at the time of promulgation of this Code. Gratuity and Salary/Wages. DAVAO FRUITS CORPORATION v ASSOCIATED LABOR UNION (1993. Ponente) QUICK FACTS: ISSUE: HELD & RATIO: . Difference PLASTIC TOWN CENTER v NLRC (1989.PHILIPPINE DUPLICATORS v NLRC (1995. Ponente) QUICK FACTS: ISSUE: HELD & RATIO: e. Effect on Benefits Art 100 Nothing in this Book shall be construed to eliminate or in any way diminish supplements. Ponente) QUICK FACTS: ISSUE: HELD & RATIO: d.

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